General Studies · Budgetary Control
Which of the following is considered a primary disadvantage of flexible budgets compared to fixed budgets?
- 1They do not factor in changing levels of business activity
- 2They completely fail to provide a yardstick for cost control
- 3They are more time-consuming and costly to design and prepare✓
- 4They are completely useless for managerial decision-making
Correct answer
They are more time-consuming and costly to design and prepare
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